Is Danish Power overvalued or undervalued?

As of 15 October 2025, the valuation grade for Danish Power has moved from expensive to very expensive. The company is currently overvalued based on its financial metrics. Key ratios include a PE ratio of 29.41, an EV to EBITDA of 19.57, and a ROCE of 38.81%.
When compared to peers, Danish Power's valuation stands out as significantly higher than companies like Apar Industries, which has a PE of 38.06 and an EV to EBITDA of 20.44, indicating a more reasonable valuation. Other peers such as ABB and BHEL also reflect very expensive valuations, but Danish Power's ratios suggest it is at the upper end of the spectrum. Additionally, while the stock has shown a 7.19% return over the past week compared to a modest 1.11% from the Sensex, its year-to-date performance of -20.49% against the Sensex's 7.10% further reinforces the notion of overvaluation.